Welcome to our Motley Fool Everlasting Income “Grand Opening” Hub!

How it works

Sit down for a brief chat with lead Portfolio Manager Scott Phillips, as he walks you through the basic mechanics of Motley Fool Everlasting Income.

Within this information-packed video you’ll discover:

How Everlasting Income plans to fulfill its highly ambitious goal of “Generating all the tax-efficient income you’ll ever need in retirement – without sacrificing your nest egg over the long term.”

Why Everlasting Income will be leveraging the unmatched power of dividends in a way that’s likely very different from anything you’ve ever done or seen before.

How Scott’s own mum was the original inspiration behind this revolutionary new retirement income strategy.

As well as much, much more that you won’t want to miss. Just click on the video below to watch now!

Turning your dividends into an income weapon

Motley Fool Everlasting Income Portfolio Manager Scott Phillips sits down with The Motley Fool’s resident dividend expert Andrew Page to discuss how Everlasting Income plans to help you turn your portfolio into an income-generating machine capable of churning “paycheque” after “paycheque”… even after your retired!

You won’t want to miss it. Just click the video player below to watch it now.

6 tax-effective SMSF strategies you probably don’t know (but should!)

Our brand-new “ATO insider” Ed Vesely will be bringing the wealth of knowledge he accumulated from nearly a decade at the tax office straight to Everlasting Income members once we open in a few days’ time.

But before he takes up his duties as a Research Analyst for Everlasting Income, he’s put together a bit of a “welcome gift” on behalf of Motley Fool readers who’ve shown interest in this brand-new “ultimate income solution.”

Frequently Asked Questions

A: Motley Fool Everlasting Income is Motley Fool Australia’s first-ever comprehensive income solution. It’s aimed at helping investors who are in or nearing retirement to generate consistent, tax-effective income once they’re ultimately no longer earning a paycheque. With the goal of preserving capital over the long term.

A: For the first time ever, Motley Fool Australia has constructed a well-balanced portfolio of high-yielding dividend shares (the most of which will be fully franked) that members like you will actually be able to easily mirror in your own portfolio – with the goal of taking the money you’ve spent years saving, and turning it into a continuous income-producing machine that endlessly churns out “paycheque” after “paycheque” on your behalf.

Meanwhile, Portfolio Manager Scott Phillips will be closely managing every aspect of this “Everlasting Income” portfolio. He may trim when a position runs up too much (and redeploy the proceeds for even higher dividends) or sell out of a holding that cuts its dividend (the last thing we want to see!), and will of course be keeping an eye on any macro market events that may threaten the portfolio and respond accordingly.

And of course, you’ll receive an instant email alert the second Scott makes any buy, sell, or rebalancing decision in the Everlasting Income portfolio, so you can immediately follow his recommendation in your own portfolio. And, as you’d expect from The Motley Fool, we’ll only make our trade after you’ve had the opportunity to act on his recommendation. You come first.

But this may be the most exciting part of Everlasting Income…

You’ll also receive a monthly email update from Scott telling you how much you can take out of the cash position of your account to “pay yourself” in income – a number we’ll determine based on how much money you’re mirroring the Everlasting Income portfolio with.

Remember, the aim of Everlasting Income is that you’ll be constantly generating dividend income year-round – so as to never have to draw down a single dollar directly from your share portfolio itself!

A: Portfolio Manager Scott Phillips is targeting an annual income payout of 4% of your portfolio’s total value. When franking credits are added, this grosses well over 5%.

Now, please don’t mistake this for the popular “4% rule” that says you should withdraw 4% of your savings to live off each year, once you retire. Scott’s goal is to generate an additional 4% income yield from your portfolio each year… meeting that rule without actually having to draw so much as a dollar directly from your share portfolio itself.

For example, say you initially joined Everlasting Income with $1,000,000 in your SMSF. Scott’s aim would be to generate $40,000 in pure dividend income on top of that lump sum – he’ll even show you how much you’ll be able to pay yourself each month to live off (through Everlasting Income‘s calculations), so you don’t have to guess!

At the end of the year, all things being equal in the market, the goal is that your investments will have yielded $40,000 in cold hard cash to live off… while simultaneously maintaining your initial lump sum. In short – to not eat into it at all.

(Of course, if the market shoots up 20% or drops 10% in the year, the Everlasting Income portfolio will naturally be affected by that — which Scott will of course be taking into account as Portfolio Manager.)

What’s more, because so many of the holdings in the Everlasting Income portfolio will be fully franked, your potential income for the first year alone would jump to nearly $50,000 once you factor in tax credits!

A: Being a member of Motley Fool Everlasting Income isn’t time consuming at all!

In fact, the service was specifically designed to be as little work as possible for investors looking to continue generating consistent paycheques month after month in retirement, with the goal of preserving capital over the long term. We’re talking mere minutes per month.

Believe it or not, all you will have to do is make the initial trades to mirror our Everlasting Income portfolio with your own capital. After that, we’ll tell you precisely how much you should pay yourself each month from the cash surplus in your portfolio (remember, our intended goal is that you’ll never have to draw so much as a dollar directly from your share portfolio itself).

We’ll even send you immediate updates if and when Portfolio Manager Scott Phillips thinks the portfolio needs rebalancing or adjusting for any reason – be it to protect against an impending macro event, because one of our positions has run up in value, or if one of our shares has simply decided to trim its dividend payment to something less advantageous to our members.

So you’ll always know precisely what to do with your portfolio under any circumstance!

Motley Fool Australia decided to stake $1,000,000 of our own investment capital behind the Everlasting Income portfolio because we simply have so much confidence in this groundbreaking new income strategy that we want to reap the maximum benefits that we can for ourselves, as well. After all, we’re investors too – and we truly believe that this could be our best investment idea ever! (Though remember — we don’t trade until after you’ve had the opportunity to act on our advice!)

But you can still easily mirror the Everlasting Income portfolio with far smaller amounts in your super… SMSF… or brokerage account, and set yourself up to write “paycheque” after “paycheque”, with the goal of not having to sell your shares to do so.

While we did largely conceive Everlasting Income with an eye toward already retired and near-retirement investors, the strategy is designed to work equally as well for literally anyone who has accumulated a healthy nest egg… and wants to turn it into a tax-effective, income-producing machine that churns out “paycheque” after “paycheque”.

A: Along with income generation and long-term capital preservation, tax efficiency makes up our three-fold member goal here in Everlasting Income.

In fact, we take it so seriously that we actually went out and poached Research Analyst, Edward Vesely, directly from the Australian Tax Office – where he’s spent the past decade working on SMSF compliance and dispute resolution – to make sure every single decision we make in Everlasting Income is done in the most tax optimised manner possible!

A: Don’t worry! Because you’re on our Motley Fool Everlasting Income “Grand Opening” Hub, you’ve already locked in your special “Early Bird” discount to join Everlasting Income once we officially launch to new members for the first time ever on Tuesday, 28 March.

Meet Your Portfolio Manager!

Meet the investors who’ll be leading Motley Fool Everlasting Income.

Scott Phillips, Portfolio Manager

Scott Phillips

Scott Phillips is The Motley Fool’s Director of Research. When we arrived in Australia in 2011, Scott was the first one knocking on the door, and he’s been with us ever since.

He’s quick to point out investing well doesn’t involve magic, secret trading systems, or complex chart-reading. Investing well means looking for opportunities that others don’t see: impressive growth potential, great management teams, out-of-favour businesses, etc. Then resisting the naysayers, doubters, and complainers, and letting time do the work.

That’s exactly how Scott’s thumped the All Ords by greater than 2 to 1 over the past five years in our Motley Fool Share Advisor service.

Before Scott joined The Motley Fool, he had a successful career in business helping sales and marketing teams make smart financial decisions. The underlying skills involved were something of a training ground for investing. He worked for good, great, and sometimes very poor companies, and with similarly variable management teams. He learned what worked in business and what didn’t. Warren Buffett says he is a better businessman because he is an investor and a better investor because he is a businessman. Scott is too.

Formally, Scott has completed a Bachelor of Commerce in Management, and has a Graduate Diploma in Accounting. He’s passionate about investing and obsessed with helping people benefit from that passion. He’s on Sky News Business, the ABC and the nationally syndicated Money News radio program with Ross Greenwood. His writing can be found in the Sydney Morning Herald and The Age. He’s been on breakfast telly, morning shows, and on The Project.

Edward Vesely, Research Analyst

Edward Vesely

When we first thought up the idea for Motley Fool Everlasting Income, we knew we wanted to accomplish three primary things on behalf of members. 1) Generate income. 2) Preserve capital over the long term. And 3) Do both of those in the most highly tax-efficient way possible.

How better to accomplish the third part of our goal than by poaching a Motley Fool member who actually worked directly in the Australian Tax Office? Our very own “tax insider,” if you will!

That’s where Edward Vesely comes in. After completing a Bachelor of International Business, a Master of Business, and a Diploma in Financial Services (Superannuation) that has led him through various roles with banks, insurance companies, and a large superannuation fund, Edward moved on to work with SMSF compliance at the Australian Tax Office back in 2008… and more recently in SMSF dispute resolution at the ATO.

The level of financial detail, regulatory information, and tax nuance that Edward has accrued over the course of nearly a decade of SMSF audits and disputes makes it hard to imagine a more reassuring presence involved in each and every investing decision Motley Fool Everlasting Income makes.

All returns cited are hypothetical and based on the percentage change between the stock price at the time of recommendation and the current or sell price (if the position has been closed) at the time of publication. Brokerage, taxes and any other associated costs are not taken into account. Please remember that investments can go up and down. Past performance is not necessarily indicative of future returns. Performance figures are not intended to be a forecast and The Motley Fool does not guarantee the performance of, or returns on any investment. All figures are accurate as of 14 March 2017.

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